Steelcase Reports Second Quarter Fiscal 2026 Results
Steelcase (NYSE: SCS) reported Q2 fiscal 2026 results with revenue growing 5% to $897.1 million and net income of $35.0 million ($0.29 per share). The company achieved adjusted earnings per share of $0.45, up from $0.39 in the prior year.
A significant highlight is the pending $2.2 billion merger with HNI Corporation, expected to close by end of 2025. The quarter saw organic revenue growth of 4%, with Americas segment up 3% and International segment up 8%. Orders grew 6% company-wide, primarily driven by strong demand from large corporate customers.
The company maintained a gross margin of 34.4% despite higher tariff and restructuring costs. Operating income decreased to $53.1 million from $90.0 million, largely due to restructuring costs and merger-related expenses. The Board declared a quarterly dividend of $0.10 per share.
[ "Merger agreement with HNI Corporation valued at $2.2 billion", "Revenue growth of 5% to $897.1 million", "Orders grew 6% year-over-year, led by large corporate customers", "Adjusted earnings per share increased to $0.45 from $0.39", "Strong International organic revenue growth of 8%", "Maintained stable gross margin at 34.4%" ]Steelcase (NYSE: SCS) ha riportato i risultati del secondo trimestre dell’esercizio 2026 con un fatturato in aumento del 5% a 897,1 milioni di dollari e un utile netto di 35,0 milioni di dollari (0,29 $ per azione). La società ha registrato un utile per azione rettificato di 0,45 $, in crescita rispetto a 0,39 $ dell’anno precedente.
Un highlight significativo è la fusione in corso da 2,2 miliardi di dollari con HNI Corporation, che dovrebbe chiudersi entro la fine del 2025. Il trimestre ha registrato una crescita organica delle entrate del 4%, con l’area Americas in crescita del 3% e l’International in crescita dell’8%. Gli ordini sono aumentati del 6% su base annua, trainati principalmente dalla forte domanda dei grandi clienti aziendali.
La società ha mantenuto un margine lordo pari al 34,4% nonostante costi tariffari e di ristrutturazione superiori. L’utile operativo è diminuito a 53,1 milioni di dollari dai 90,0 milioni, principalmente per costi di ristrutturazione e spese legate alla fusione. Il Consiglio ha dichiarato un dividendo trimestrale di 0,10 $ per azione.
Steelcase (NYSE: SCS) presentó los resultados del segundo trimestre fiscal 2026 con ingresos creciendo un 5% hasta 897,1 millones de dólares y una utilidad neta de 35,0 millones de dólares (0,29 por acción). La compañía logró un beneficio por acción ajustado de 0,45 dólares, frente a 0,39 dólares en el año anterior.
Un aspecto destacado es la inminente fusión por 2.200 millones de dólares con HNI Corporation, que se espera cierre para finales de 2025. El trimestre mostró un crecimiento orgánico de ingresos del 4%, con América del Norte creció un 3% y Internacional un 8%. Los pedidos crecieron un 6% a nivel de la empresa, impulsados principalmente por la fuerte demanda de grandes clientes corporativos.
La compañía mantuvo un margen bruto de 34,4% a pesar de mayores costos por aranceles y reestructuración. El ingreso operativo bajó a 53,1 millones de dólares desde 90,0 millones, principalmente debido a costos de reestructuración y gastos relacionados con la fusión. La Junta declaró un dividendo trimestral de 0,10 dólares por acción.
Steelcase(NYSE: SCS)가 2026 회계연도 2분기 실적을 발표했다. 매출은 5% 증가한 8.971억 달러였고 순이익은 3500만 달러(주당 0.29달러)였다. 조정 주당순이익은 0.45달러로 전년 동기의 0.39달러에서 상승했다.
주요 하이라이트는 HNI Corporation과의 22억 달러 규모의 인수합병으로, 2025년 말까지 마감될 것으로 예상된다. 분기에는 유기매출 성장 4%이 확인됐고, 미국 지역은 3%, 국제 지역은 8% 성장했다. 신규 주문은 전사적으로 6% 증가했고, 대기업 고객의 강한 수요가 주된 원동력이었다.
관세 및 구조조정 비용 증가에도 불구하고 총이익률은 34.4%를 유지했다. 영업이익은 구조조정 비용과 합병 관련 비용으로 인해 5,310만 달러에서 감소했고, 전년 동기의 9,000만 달러에서 하락했다. 이사회는 분기 배당금으로 주당 0.10달러를 선언했다.
Steelcase (NYSE: SCS) a publié ses résultats du deuxième trimestre fiscal 2026 avec un chiffre d’affaires en hausse de 5% à 897,1 millions de dollars et un résultat net de 35,0 millions de dollars (0,29 $ par action). L’entreprise a enregistré un bénéfice par action ajusté de 0,45 $, contre 0,39 $ l’année précédente.
Un point fort notable est la fusion en cours d’un montant de 2,2 milliards de dollars avec HNI Corporation, la clôture étant attendue d’ici fin 2025. Le trimestre a enregistré une croissance organique des revenus de 4%, avec les Amériques en hausse de 3% et l’International en hausse de 8%. Les commandes ont augmenté de 6% à l’échelle de l’entreprise, principalement tirées par la forte demande des grands clients corporates.
La société a maintenu une marge brute de 34,4% malgré des coûts de tarifs et de restructuration plus élevés. Le résultat opérationnel a diminué à 53,1 millions de dollars contre 90,0 millions, principalement en raison des coûts de restructuration et des dépenses liées à la fusion. Le conseil d’administration a déclaré un dividende trimestriel de 0,10 $ par action.
Steelcase (NYSE: SCS) meldete die Ergebnisse für das zweite Quartal des Geschäftsjahres 2026, wobei der Umsatz um 5% auf 897,1 Mio. USD stieg und der Nettogewinn 35,0 Mio. USD (0,29 USD pro Aktie) betrug. Das bereinigte Ergebnis pro Aktie lag bei 0,45 USD, gegenüber 0,39 USD im Vorjahr.
Ein bedeutender Höhepunkt ist die bevorstehende 2,2-Milliarden-Dollar-Fusion mit der HNI Corporation, deren Abschluss voraussichtlich Ende 2025 erfolgt. Im Quartal gab es ein organisches Umsatzwachstum von 4%, Americas +3% und International +8%. Die Bestellungen wuchsen unternehmensweit um 6%, maßgeblich getrieben durch eine starke Nachfrage großer Unternehmenskunden.
Die Bruttomarge blieb bei 34,4%, trotz höherer Zölle und Restrukturierungskosten. Das operative Ergebnis ging auf 53,1 Mio. USD von 90,0 Mio. USD zurück, hauptsächlich aufgrund Restrukturierungskosten und mergersbezogener Aufwendungen. Der Vorstand hat eine vierteljährliche Dividende von 0,10 USD pro Aktie beschlossen.
Steelcase (NYSE: SCS) أصدرت نتائج الربع الثاني من السنة المالية 2026 مع نمو الإيرادات بنحو 5% إلى 897.1 مليون دولار وصافي الدخل 35.0 مليون دولار (0.29 دولار للسهم). حققت الشركة هامش ربحية منضبطة للسهم قدره 0.45 دولار، مقارنة بـ 0.39 دولار في العام السابق.
أبرز ما في النتائج هو الاندماج الجاري بقيمة 2.2 مليار دولار مع HNI Corporation، المتوقع أن يغلق قبل نهاية 2025. شهد الربع نموًا إيرادات عضوية بنسبة 4%، حيث ارتفع قطاع الأمريكتين بنسبة 3% وقطاع الدولي بنسبة 8%. ارتفعت الطلبات بنسبة 6% على مستوى الشركة، غالبًا بدفع من الطلب القوي من عملاء الشركات الكبرى.
حافظت الشركة على هامش إجمالي قدره 34.4% رغم ارتفاع تكاليف التعريفات وإعادة الهيكلة. انخفض الدخل التشغيلي إلى 53.1 مليون دولار من 90.0 مليون دولار، ويرجع ذلك بشكل رئيسي إلى تكاليف إعادة الهيكلة ومصاريف الاندماج. قرر المجلس توزيـع أرباح ربع سنوية قدرها 0.10 دولار للسهم.
Steelcase（NYSE: SCS） 公布了2026财年第二财季业绩，收入同比增长5%，至8.971亿美元，净利润为3500万美元（每股0.29美元）。调整后每股收益为0.45美元，高于上一年的0.39美元。
一个重要亮点是与HNI Corporation的
- None.
- Operating income decreased 41% to $53.1 million from $90.0 million
- Net income declined to $35.0 million from $63.1 million year-over-year
- International segment reported operating loss of $14.6 million
- Higher tariff costs and unfavorable business mix impacted margins
- Operating expenses increased by $42.0 million compared to prior year
Insights
Steelcase reported solid Q2 with 5% revenue growth and significant merger news, despite notable year-over-year profit decline.
Steelcase delivered a 5% revenue increase to
Despite maintaining a 34.4% gross margin (nearly flat year-over-year), reported net income fell significantly to
Looking at adjusted earnings, which exclude these special items, Steelcase actually improved to
The most significant development is the pending acquisition by HNI Corporation in a
Segment performance reveals divergent results. The Americas segment showed 3% organic revenue growth with strong adjusted operating income of
The company maintained its $0.10 quarterly dividend while total liquidity decreased by
- Revenue grew
5% compared to prior year, led by strong growth from large corporate customers in the Americas and from the India market in International - Gross margin of
34.4% was approximately flat compared to prior year despite higher tariff and restructuring costs - Orders grew
6% compared to prior year, led by continued growth from large corporate customers in the Americas
GRAND RAPIDS, Mich., Sept. 24, 2025 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE: SCS) today reported second quarter revenue of
As previously announced, on August 3, 2025, the company entered into an Agreement and Plan of Merger (the "Merger Agreement") with HNI Corporation ("HNI"), Geranium Merger Sub I, Inc., and Geranium Merger Sub II LLC, pursuant to which HNI will acquire the company in a cash and stock transaction, with a total consideration of approximately
Revenue and order growth (decline) compared to the prior year were as follows:
| Q2 2026 vs. Q2 2025 | ||||||||
| Revenue Growth | Organic Revenue Growth | Organic Order Growth (Decline) | ||||||
| Americas | 3 | % | 3 | % | 8 | % | ||
| International | 13 | % | 8 | % | (1) | % | ||
| Steelcase Inc. | 5 | % | 4 | % | 6 | % | ||
Revenue grew 5 percent in the second quarter compared to the prior year and grew 4 percent on an organic basis, including organic growth of 3 percent in the Americas and 8 percent in International. The Americas growth was driven by strong growth from large corporate customers, partially offset by a decline from education customers. The International growth was driven by India, China and the United Kingdom, partially offset by declines in France and Germany.
Orders (adjusted for currency translation effects) grew 6 percent in the second quarter compared to the prior year and included 8 percent growth in the Americas and a 1 percent decline in International. The Americas reflected growth from large corporate customers and small to midsized businesses, partially offset by declines from education and government customers. In International, declines in Germany and France were mostly offset by growth in India and Japan.
“Our second quarter revenue and order growth was led by continued strengthening of demand from our large corporate customers,” said Sara Armbruster, president and CEO. “Business leaders are making investments in their workplaces as they bring their employees together, and they are turning to Steelcase for research-driven solutions that support connection, creativity and performance.”
Operating income (loss) and adjusted operating income (loss) were as follows:
| Operating income (loss) | Adjusted operating income (loss) | ||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Three months ended | Three months ended | ||||||||||||||
| August 29, 2025 | August 23, 2024 | August 29, 2025 | August 23, 2024 | ||||||||||||
| Americas | $ | 67.7 | $ | 102.0 | $ | 78.0 | $ | 76.1 | |||||||
| International | (14.6 | ) | (12.0 | ) | (2.7 | ) | (7.6 | ) | |||||||
| Steelcase Inc. | $ | 53.1 | $ | 90.0 | $ | 75.3 | $ | 68.5 | |||||||
Operating income of
“Higher volume in India and China drove the
Gross margin of 34.4 percent in the second quarter represented a decrease of 10 basis points compared to the prior year driven by higher tariff costs, unfavorable business mix, higher discounts in EMEA and
Operating expenses of
Other income, net of
Total liquidity, which is comprised of cash and cash equivalents, short-term investments and the cash surrender value of company-owned life insurance, aggregated to
The Board of Directors has declared a quarterly cash dividend of
“We are proud of the results our teams delivered this quarter as we remain focused on executing our strategy and winning new business while preparing for our anticipated acquisition by HNI,” said Armbruster. “As an industry leader, we continue to help our customers around the world reimagine their workplaces in ways that support how people want to work today and in the future.”
| Business Segment Results | |||||||||||||||||||||
| (in millions) | |||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| August 29, 2025 | August 23, 2024 | % Change | August 29, 2025 | August 23, 2024 | % Change | ||||||||||||||||
| Revenue | |||||||||||||||||||||
| Americas (1) | $ | 707.1 | $ | 688.0 | 3 | % | $ | 1,310.7 | $ | 1,242.4 | 5 | % | |||||||||
| International (2) | 190.0 | 167.8 | 13 | % | 365.4 | 340.7 | 7 | % | |||||||||||||
| $ | 897.1 | $ | 855.8 | 5 | % | $ | 1,676.1 | $ | 1,583.1 | 6 | % | ||||||||||
| Revenue mix | |||||||||||||||||||||
| Americas | 78.8 | % | 80.4 | % | 78.2 | % | 78.5 | % | |||||||||||||
| International | 21.2 | % | 19.6 | % | 21.8 | % | 21.5 | % | |||||||||||||
| Operating income (loss) | |||||||||||||||||||||
| Americas | $ | 67.7 | $ | 102.0 | $ | 95.7 | $ | 120.5 | |||||||||||||
| International | (14.6 | ) | (12.0 | ) | (17.1 | ) | (12.9 | ) | |||||||||||||
| $ | 53.1 | $ | 90.0 | $ | 78.6 | $ | 107.6 | ||||||||||||||
| Operating margin | 5.9 | % | 10.5 | % | 4.7 | % | 6.8 | % | |||||||||||||
Business Segment Footnotes
- The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America with a comprehensive portfolio of furniture, interior architectural, textile and surface imaging products that are marketed to corporate, government, education, healthcare and retail customers primarily through the Steelcase, AMQ, Coalesse, Designtex, HALCON, Orangebox, Smith System and Viccarbe brands.
- The International segment serves customers in EMEA and Asia Pacific with a comprehensive portfolio of furniture and interior architectural products that are marketed to corporate, government, education, healthcare and retail customers primarily through the Steelcase, Coalesse, Orangebox, Smith System and Viccarbe brands.
| QUARTER OVER QUARTER ORGANIC REVENUE GROWTH BY SEGMENT | |||||||||||
| Q2 2026 vs. Q2 2025 | |||||||||||
| (Unaudited) | |||||||||||
| Steelcase Inc. | Americas | International | |||||||||
| Q2 2025 revenue | $ | 855.8 | $ | 688.0 | $ | 167.8 | |||||
| Currency translation effects | 8.6 | 0.1 | 8.5 | ||||||||
| Q2 2025 revenue, adjusted | $ | 864.4 | $ | 688.1 | $ | 176.3 | |||||
| Q2 2026 revenue | $ | 897.1 | $ | 707.1 | $ | 190.0 | |||||
| Organic growth $ | $ | 32.7 | $ | 19.0 | $ | 13.7 | |||||
| Organic growth % | 4 | % | 3 | % | 8 | % | |||||
| ADJUSTED EARNINGS PER SHARE | |||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| August 29, 2025 | August 23, 2024 | August 29, 2025 | August 23, 2024 | ||||||||||||
| Earnings per share - diluted | $ | 0.29 | $ | 0.53 | $ | 0.41 | $ | 0.62 | |||||||
| Amortization of purchased intangible assets, per share | 0.04 | 0.03 | 0.07 | 0.07 | |||||||||||
| Income tax effect of amortization of purchased intangible assets, per share | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.02 | ) | |||||||
| Restructuring costs, per share | 0.10 | 0.02 | 0.18 | 0.07 | |||||||||||
| Income tax effect of restructuring costs, per share | (0.02 | ) | (0.01 | ) | (0.04 | ) | (0.02 | ) | |||||||
| Gains on the sale of land, net of variable compensation impacts, per share | (0.01 | ) | (0.23 | ) | (0.01 | ) | (0.23 | ) | |||||||
| Income tax effect of gains on the sale of land, net of variable compensation impacts, per share | — | 0.06 | — | 0.06 | |||||||||||
| Merger transaction costs, per share | 0.06 | — | 0.06 | — | |||||||||||
| Income tax effect of merger transaction costs, per share | — | — | — | — | |||||||||||
| Adjusted earnings per share - diluted | $ | 0.45 | $ | 0.39 | $ | 0.65 | $ | 0.55 | |||||||
| ADJUSTED EBITDA | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Trailing Four Quarters Ended | ||||||||||||||||||
| November 22, 2024 | February 28, 2025 | May 30, 2025 | August 29, 2025 | August 29, 2025 | |||||||||||||||
| Net income | $ | 19.1 | $ | 27.6 | $ | 13.6 | $ | 35.0 | $ | 95.3 | |||||||||
| Income tax expense (benefit) | 7.0 | (19.5 | ) | 5.2 | 17.1 | 9.8 | |||||||||||||
| Interest expense | 6.3 | 6.8 | 6.3 | 6.3 | 25.7 | ||||||||||||||
| Depreciation and amortization | 20.0 | 20.6 | 17.6 | 19.3 | 77.5 | ||||||||||||||
| Share-based compensation | 1.5 | 4.6 | 12.9 | 4.1 | 23.1 | ||||||||||||||
| Restructuring costs | 2.0 | 0.3 | 9.2 | 11.9 | 23.4 | ||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | — | — | — | (1.2 | ) | (1.2 | ) | ||||||||||||
| Loss on pension plan settlement | 15.2 | — | — | — | 15.2 | ||||||||||||||
| Merger transaction costs | — | $ | 1.8 | $ | 0.6 | $ | 7.1 | 9.5 | |||||||||||
| Adjusted EBITDA | $ | 71.1 | $ | 42.2 | $ | 65.4 | $ | 99.6 | $ | 278.3 | |||||||||
| Revenue | $ | 794.9 | $ | 788.0 | $ | 779.0 | $ | 897.1 | $ | 3,259.0 | |||||||||
| Adjusted EBITDA as a percentage of revenue | 8.9 | % | 5.4 | % | 8.4 | % | 11.1 | % | 8.5 | % | |||||||||
| Steelcase Inc. | |||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| August 29, 2025 | August 23, 2024 | August 29, 2025 | August 23, 2024 | ||||||||||||||||||||||||
| Revenue | $ | 897.1 | 100.0 | % | $ | 855.8 | 100.0 | % | $ | 1,676.1 | 100.0 | % | $ | 1,583.1 | 100.0 | % | |||||||||||
| Cost of sales | 585.0 | 65.2 | 558.5 | 65.3 | 1,099.2 | 65.6 | 1,044.4 | 66.0 | |||||||||||||||||||
| Restructuring costs | 3.6 | 0.4 | 1.9 | 0.2 | 4.6 | 0.3 | 8.9 | 0.5 | |||||||||||||||||||
| Gross profit | 308.5 | 34.4 | 295.4 | 34.5 | 572.3 | 34.1 | 529.8 | 33.5 | |||||||||||||||||||
| Operating expenses | 247.1 | 27.6 | 205.1 | 24.0 | 477.2 | 28.4 | 422.6 | 26.7 | |||||||||||||||||||
| Restructuring costs (benefits) | 8.3 | 0.9 | 0.3 | — | 16.5 | 1.0 | (0.4 | ) | — | ||||||||||||||||||
| Operating income | 53.1 | 5.9 | 90.0 | 10.5 | 78.6 | 4.7 | 107.6 | 6.8 | |||||||||||||||||||
| Interest expense | (6.3 | ) | (0.7 | ) | (6.4 | ) | (0.7 | ) | (12.6 | ) | (0.8 | ) | (12.6 | ) | (0.8 | ) | |||||||||||
| Investment income | 2.3 | 0.3 | 2.9 | 0.3 | 5.2 | 0.3 | 5.3 | 0.3 | |||||||||||||||||||
| Other income (expense), net | 3.0 | 0.3 | (0.6 | ) | (0.1 | ) | (0.3 | ) | — | (0.3 | ) | — | |||||||||||||||
| Income before income tax expense | 52.1 | 5.8 | 85.9 | 10.0 | 70.9 | 4.2 | 100.0 | 6.3 | |||||||||||||||||||
| Income tax expense | 17.1 | 1.9 | 22.8 | 2.6 | 22.3 | 1.3 | 26.0 | 1.6 | |||||||||||||||||||
| Net income | $ | 35.0 | 3.9 | % | $ | 63.1 | 7.4 | % | $ | 48.6 | 2.9 | % | $ | 74.0 | 4.7 | % | |||||||||||
| Operating income | $ | 53.1 | 5.9 | % | $ | 90.0 | 10.5 | % | $ | 78.6 | 4.7 | % | $ | 107.6 | 6.8 | % | |||||||||||
| Amortization of purchased intangible assets | 4.4 | 0.5 | 4.2 | 0.5 | 8.7 | 0.5 | 8.5 | 0.5 | |||||||||||||||||||
| Restructuring costs | 11.9 | 1.3 | 2.2 | 0.2 | 21.1 | 1.3 | 8.5 | 0.5 | |||||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | (1.2 | ) | (0.1 | ) | (27.9 | ) | (3.2 | ) | (1.2 | ) | (0.1 | ) | (27.9 | ) | (1.7 | ) | |||||||||||
| Merger transaction costs | 7.1 | 0.8 | — | — | 7.7 | 0.5 | — | — | |||||||||||||||||||
| Adjusted operating income | $ | 75.3 | 8.4 | % | $ | 68.5 | 8.0 | % | $ | 114.9 | 6.9 | % | $ | 96.7 | 6.1 | % | |||||||||||
| Americas | |||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| August 29, 2025 | August 23, 2024 | August 29, 2025 | August 23, 2024 | ||||||||||||||||||||||||
| Revenue | $ | 707.1 | 100.0 | % | $ | 688.0 | 100.0 | % | $ | 1,310.7 | 100.0 | % | $ | 1,242.4 | 100.0 | % | |||||||||||
| Cost of sales | 447.7 | 63.3 | 437.0 | 63.5 | 838.4 | 64.0 | 801.9 | 64.5 | |||||||||||||||||||
| Restructuring costs | 0.9 | 0.1 | 1.5 | 0.2 | 1.9 | 0.1 | 5.6 | 0.5 | |||||||||||||||||||
| Gross profit | 258.5 | 36.6 | 249.5 | 36.3 | 470.4 | 35.9 | 434.9 | 35.0 | |||||||||||||||||||
| Operating expenses | 190.1 | 26.9 | 147.3 | 21.5 | 365.9 | 27.9 | 314.0 | 25.3 | |||||||||||||||||||
| Restructuring costs | 0.7 | 0.1 | 0.2 | — | 8.8 | 0.7 | 0.4 | — | |||||||||||||||||||
| Operating income | 67.7 | 9.6 | 102.0 | 14.8 | 95.7 | 7.3 | 120.5 | 9.7 | |||||||||||||||||||
| Amortization of purchased intangible assets | 3.1 | 0.4 | 3.1 | 0.5 | 6.2 | 0.5 | 6.2 | 0.5 | |||||||||||||||||||
| Restructuring costs | 1.6 | 0.2 | 1.7 | 0.2 | 10.7 | 0.8 | 6.0 | 0.5 | |||||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | (1.5 | ) | (0.2 | ) | (30.7 | ) | (4.4 | ) | (1.5 | ) | (0.1 | ) | (30.7 | ) | (2.5 | ) | |||||||||||
| Merger transaction costs | 7.1 | 1.0 | — | — | 7.7 | 0.6 | — | — | |||||||||||||||||||
| Adjusted operating income | $ | 78.0 | 11.0 | % | $ | 76.1 | 11.1 | % | $ | 118.8 | 9.1 | % | $ | 102.0 | 8.2 | % | |||||||||||
| International | |||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| August 29, 2025 | August 23, 2024 | August 29, 2025 | August 23, 2024 | ||||||||||||||||||||||||
| Revenue | $ | 190.0 | 100.0 | % | $ | 167.8 | 100.0 | % | $ | 365.4 | 100.0 | % | $ | 340.7 | 100.0 | % | |||||||||||
| Cost of sales | 137.3 | 72.3 | 121.5 | 72.4 | 260.8 | 71.4 | 242.5 | 71.2 | |||||||||||||||||||
| Restructuring costs | 2.7 | 1.4 | 0.4 | 0.2 | 2.7 | 0.7 | 3.3 | 0.9 | |||||||||||||||||||
| Gross profit | 50.0 | 26.3 | 45.9 | 27.4 | 101.9 | 27.9 | 94.9 | 27.9 | |||||||||||||||||||
| Operating expenses | 57.0 | 30.0 | 57.8 | 34.5 | 111.3 | 30.5 | 108.6 | 31.9 | |||||||||||||||||||
| Restructuring costs (benefits) | 7.6 | 4.0 | 0.1 | 0.1 | 7.7 | 2.1 | (0.8 | ) | (0.2 | ) | |||||||||||||||||
| Operating loss | (14.6 | ) | (7.7 | ) | (12.0 | ) | (7.2 | ) | (17.1 | ) | (4.7 | ) | (12.9 | ) | (3.8 | ) | |||||||||||
| Amortization of purchased intangible assets | 1.3 | 0.7 | 1.1 | 0.7 | 2.5 | 0.7 | 2.3 | 0.7 | |||||||||||||||||||
| Restructuring costs | 10.3 | 5.4 | 0.5 | 0.3 | 10.4 | 2.8 | 2.5 | 0.7 | |||||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | 0.3 | 0.2 | 2.8 | 1.7 | 0.3 | 0.1 | 2.8 | 0.8 | |||||||||||||||||||
| Adjusted operating income (loss) | $ | (2.7 | ) | (1.4 | )% | $ | (7.6 | ) | (4.5 | )% | $ | (3.9 | ) | (1.1 | )% | $ | (5.3 | ) | (1.6 | )% | |||||||
Webcast
Steelcase will discuss second quarter results on a conference call at 8:30 a.m. Eastern time tomorrow. Listeners may access the conference call at http://ir.steelcase.com.
Non-GAAP Financial Measures
This earnings release contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the condensed consolidated statements of income, balance sheets or statements of cash flows of the company. The non-GAAP financial measures used are (1) organic revenue growth, (2) adjusted operating income (loss), (3) adjusted earnings per share and (4) adjusted EBITDA. The company has provided a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure in the tables above. These measures are supplemental to, and should be used in conjunction with, the most comparable GAAP measures. Management uses these non-GAAP financial measures to monitor and evaluate financial results and trends.
Organic Revenue Growth
The company defines organic revenue growth as revenue growth excluding the impact of acquisitions and divestitures, foreign currency translation effects and the impact of the additional week in the fourth quarter of 2025. Organic revenue growth is calculated by adjusting prior year revenue to include revenues of acquired companies prior to the date of the company's acquisition, to exclude revenues of divested companies, to use current year average exchange rates in the conversion of foreign-denominated revenue and to exclude the estimated revenues associated with the additional week in the fourth quarter of 2025. The company believes organic revenue growth is a meaningful metric to investors as it provides a more consistent comparison of the company's revenue to prior periods as well as to industry peers.
Adjusted Operating Income (Loss) and Adjusted Earnings Per Share
The company defines adjusted operating income (loss) as operating income (loss) excluding amortization of purchased intangible assets, restructuring costs (benefits) and gains (losses) on the sale of land, net of variable compensation impacts. The company defines adjusted earnings per share as earnings per share, on a diluted basis, excluding amortization of purchased intangible assets, restructuring costs (benefits), gains (losses) on the sale of land, net of variable compensation impacts, and gains (losses) on pension plan settlements, and the related income tax effects of these items.
Amortization of purchased intangible assets: The company may record intangible assets (such as backlog, dealer relationships, trademarks, know-how and designs and proprietary technology) when it acquires companies. The company allocates the fair value of purchase consideration to net tangible and intangible assets acquired based on their estimated fair values. The fair value estimates for these intangible assets require management to make significant estimates and assumptions, which include the useful lives of intangible assets. The company believes that adjusting for amortization of purchased intangible assets provides a more consistent comparison of its operating performance to prior periods as well as to industry peers.
Restructuring costs (benefits): Restructuring costs (benefits) may be recorded as the company's business strategies change or in response to changing market trends and economic conditions. The company believes that adjusting for restructuring costs (benefits), which are primarily associated with business exit and workforce reduction costs, provides a more consistent comparison of its operating performance to prior periods as well as to industry peers.
Gains (losses) on the sale of land, net of variable compensation impacts: The company may sell land when conditions are favorable. Gains and losses on the sale of land may increase or decrease, respectively, variable compensation expense. The company believes adjusting for these items provides a more consistent comparison of its operating performance to prior periods as well as to industry peers.
Gains (losses) on pension plan settlements: The company realizes gains or losses previously reported as unrealized in Accumulated other comprehensive income (loss) in Other income (expense), net, in connection with pension plan settlements when all risks related to the benefit obligations to plan participants and plan assets are transferred. The company believes adjusting for the gains or losses on pension plan settlements provides a more consistent comparison of its operating performance to prior periods as well as to industry peers.
Merger transaction costs: The company has incurred legal, advisory and other incremental professional fees incurred in connection with the Merger Agreement. The company believes that adjusting for these transaction costs, which are not indicative of our core operating results, provides a more consistent comparison of our ongoing operating performance to prior periods as well as to industry peers.
Adjusted EBITDA
The company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization ("EBITDA") adjusted to exclude share-based compensation, restructuring costs (benefits), gains (losses) on the sale of land, net of variable compensation impacts gains (losses) on pension plan settlements and merger transaction costs. The company believes adjusted EBITDA provides investors with useful information regarding the operating profitability of the company as well as a useful comparison to other companies. EBITDA is a measurement commonly used in capital markets to value companies and is used by the company's lenders and rating agencies to evaluate its performance. The company adjusts EBITDA for share-based compensation as it represents a significant non-cash item which impacts its earnings. The company also adjusts EBITDA for restructuring costs, gains (losses) on the sale of land, net of variable compensation impacts, gains (losses) on pension plan settlements and merger transaction costs to provide a more consistent comparison of its earnings to prior periods as well as to industry peers.
Forward-looking Statements
From time to time, in written and oral statements, the company discusses its expectations regarding future events and its plans and objectives for future operations. These forward-looking statements, including any statements about the benefits of the transactions contemplated by the Merger Agreement or HNI’s, the company's or the combined company’s plans, objectives, expectations and intentions, discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to the company, based on current beliefs of management as well as assumptions made by, and information currently available to, the company. Forward-looking statements generally are accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “possible,” “potential,” “predict,” “project," "target” or other similar words, phrases or expressions. Although the company believes these forward-looking statements are reasonable, they are based upon a number of assumptions concerning future conditions, any or all of which may ultimately prove to be inaccurate. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements and vary from the company's expectations because of factors such as, but not limited to, competitive and general economic conditions domestically and internationally; acts of terrorism, war, governmental action, natural disasters, pandemics and other Force Majeure events; cyberattacks; changes in the legal and regulatory environment; changes in raw material, commodity and other input costs; currency fluctuations; changes in customer demand; risks and uncertainties relating to the transactions contemplated by the Merger Agreement, including the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the Merger Agreement; the outcome of any legal proceedings that may be instituted against HNI or the company in connection with the Merger Agreement; the possibility that the mergers do not close when expected or at all because required regulatory, shareholder, or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that seeking or obtaining such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the mergers); the risk that the benefits from the mergers may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, trade policy (including tariff levels), laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which HNI and the company operate; any failure to promptly and effectively integrate the businesses of HNI and the company; the possibility that the mergers may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of HNI’s or the company’s customers, employees or other business partners, including those resulting from the announcement, pendency or completion of the mergers; and the diversion of management’s attention and time to the mergers from ongoing business operations and opportunities; and the other risks and contingencies detailed in the company's most recent Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. The company undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
About Steelcase Inc.
Steelcase (NYSE: SCS) is a global design and thought leader in the world of work. Our purpose is to help the world work better. Along with more than 30 creative and technology partner brands, we research, design and manufacture furnishings and solutions for many of the places where work happens — including offices, homes, and learning and health environments. Together with our 11,300 employees, we’re working toward better futures for the wellbeing of people and the planet. Our solutions come to life through our global community of expert Steelcase dealers in approximately 790 locations, store.steelcase.com and other retail partners. For more information, visit Steelcase.com.
| STEELCASE INC. | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
| (in millions, except per share data) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| August 29, 2025 | August 23, 2024 | August 29, 2025 | August 23, 2024 | ||||||||||||
| Revenue | $ | 897.1 | $ | 855.8 | $ | 1,676.1 | $ | 1,583.1 | |||||||
| Cost of sales | 585.0 | 558.5 | 1,099.2 | 1,044.4 | |||||||||||
| Restructuring costs | 3.6 | 1.9 | 4.6 | 8.9 | |||||||||||
| Gross profit | 308.5 | 295.4 | 572.3 | 529.8 | |||||||||||
| Operating expenses | 247.1 | 205.1 | 477.2 | 422.6 | |||||||||||
| Restructuring costs (benefits) | 8.3 | 0.3 | 16.5 | (0.4 | ) | ||||||||||
| Operating income | 53.1 | 90.0 | 78.6 | 107.6 | |||||||||||
| Interest expense | (6.3 | ) | (6.4 | ) | (12.6 | ) | (12.6 | ) | |||||||
| Investment income | 2.3 | 2.9 | 5.2 | 5.3 | |||||||||||
| Other income (expense), net | 3.0 | (0.6 | ) | (0.3 | ) | (0.3 | ) | ||||||||
| Income before income tax expense | 52.1 | 85.9 | 70.9 | 100.0 | |||||||||||
| Income tax expense | 17.1 | 22.8 | 22.3 | 26.0 | |||||||||||
| Net income | $ | 35.0 | $ | 63.1 | $ | 48.6 | $ | 74.0 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 0.29 | $ | 0.53 | $ | 0.41 | $ | 0.63 | |||||||
| Diluted | $ | 0.29 | $ | 0.53 | $ | 0.41 | $ | 0.62 | |||||||
| Weighted average shares outstanding - basic | 119.0 | 118.1 | 118.6 | 118.2 | |||||||||||
| Weighted average shares outstanding - diluted | 119.7 | 118.8 | 119.3 | 119.0 | |||||||||||
| Dividends declared and paid per common share | $ | 0.100 | $ | 0.100 | $ | 0.200 | $ | 0.200 | |||||||
| STEELCASE INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in millions) | |||||||
| (Unaudited) | |||||||
| August 29, 2025 | February 28, 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 216.8 | $ | 346.3 | |||
| Short-term investments | 41.1 | 41.6 | |||||
| Accounts receivable, net of allowance of | 369.8 | 323.1 | |||||
| Inventories, net | 288.0 | 245.7 | |||||
| Prepaid expenses | 42.5 | 37.5 | |||||
| Other current assets | 48.9 | 34.8 | |||||
| Total current assets | 1,007.1 | 1,029.0 | |||||
| Property, plant and equipment, net of accumulated depreciation of | 343.0 | 328.1 | |||||
| Company-owned life insurance ("COLI") | 168.9 | 170.4 | |||||
| Deferred income taxes | 154.9 | 166.8 | |||||
| Goodwill | 276.5 | 273.5 | |||||
| Other intangible assets, net of accumulated amortization of | 70.0 | 77.0 | |||||
| Investments in unconsolidated affiliates | 56.0 | 53.3 | |||||
| Right-of-use operating lease assets | 160.8 | 141.2 | |||||
| Other assets | 114.8 | 91.1 | |||||
| Total assets | $ | 2,352.0 | $ | 2,330.4 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 234.0 | $ | 228.2 | |||
| Current operating lease obligations | 40.3 | 39.7 | |||||
| Employee compensation | 133.9 | 187.3 | |||||
| Employee benefit plan obligations | 36.0 | 49.7 | |||||
| Accrued promotions | 28.5 | 23.5 | |||||
| Customer deposits | 58.4 | 43.0 | |||||
| Other current liabilities | 76.0 | 97.7 | |||||
| Total current liabilities | 607.1 | 669.1 | |||||
| Long-term liabilities: | |||||||
| Long-term debt | 447.4 | 447.1 | |||||
| Employee benefit plan obligations | 98.3 | 100.7 | |||||
| Long-term operating lease obligations | 132.8 | 113.9 | |||||
| Other long-term liabilities | 50.0 | 47.9 | |||||
| Total long-term liabilities | 728.5 | 709.6 | |||||
| Total liabilities | 1,335.6 | 1,378.7 | |||||
| Shareholders’ equity: | |||||||
| Additional paid-in capital | 41.5 | 29.3 | |||||
| Accumulated other comprehensive income (loss) | (35.5 | ) | (63.5 | ) | |||
| Retained earnings | 1,010.4 | 985.9 | |||||
| Total shareholders’ equity | 1,016.4 | 951.7 | |||||
| Total liabilities and shareholders’ equity | $ | 2,352.0 | $ | 2,330.4 | |||
| STEELCASE INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
| (in millions) | |||||||
| Six Months Ended | |||||||
| August 29, 2025 | August 23, 2024 | ||||||
| OPERATING ACTIVITIES | |||||||
| Net income | $ | 48.6 | $ | 74.0 | |||
| Depreciation and amortization | 36.9 | 40.2 | |||||
| Share-based compensation | 17.4 | 18.0 | |||||
| Restructuring costs | 21.1 | 8.5 | |||||
| Gains on sales of fixed assets, net | (2.7 | ) | (41.7 | ) | |||
| Other | 9.0 | (3.2 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (38.1 | ) | (13.7 | ) | |||
| Inventories | (38.0 | ) | (9.3 | ) | |||
| Cloud computing arrangements expenditures | (21.8 | ) | (22.6 | ) | |||
| Other assets | (15.1 | ) | 3.7 | ||||
| Accounts payable | 1.9 | 17.3 | |||||
| Employee compensation liabilities | (78.7 | ) | (39.8 | ) | |||
| Employee benefit obligations | (18.9 | ) | (14.5 | ) | |||
| Income taxes payable | (18.5 | ) | 14.2 | ||||
| Accrued expenses and other liabilities | 14.7 | 17.9 | |||||
| Net cash provided by (used in) operating activities | (82.2 | ) | 49.0 | ||||
| INVESTING ACTIVITIES | |||||||
| Capital expenditures | (32.1 | ) | (24.6 | ) | |||
| Proceeds from disposal of fixed assets | 3.1 | 44.3 | |||||
| Purchases of short-term investments | (7.4 | ) | (40.3 | ) | |||
| Liquidations of short-term investments | 8.1 | 1.7 | |||||
| Other | 8.9 | 3.0 | |||||
| Net cash used in investing activities | (19.4 | ) | (15.9 | ) | |||
| FINANCING ACTIVITIES | |||||||
| Dividends paid | (24.1 | ) | (24.0 | ) | |||
| Common stock repurchases | (5.2 | ) | (30.3 | ) | |||
| Net cash used in financing activities | (29.3 | ) | (54.3 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | 1.2 | (0.8 | ) | ||||
| Net decrease in cash, cash equivalents and restricted cash | (129.7 | ) | (22.0 | ) | |||
| Cash and cash equivalents and restricted cash, beginning of period (1) | 353.8 | 325.9 | |||||
| Cash and cash equivalents and restricted cash, end of period (2) | $ | 224.1 | $ | 303.9 | |||
| (1) These amounts include restricted cash of | |||||||
| (2) These amounts include restricted cash of | |||||||
Restricted cash primarily represents funds held in escrow for potential future workers’ compensation and product liability claims. The restricted cash balance is included as part of Other assets on the Condensed Consolidated Balance Sheets.
Source: Steelcase
SC-ERR
CONTACT: Investor Contact: Mike O'Meara Investor Relations ir@steelcase.com Media Contact: Brodie Bertrand Corporate Communications communications@steelcase.com
FAQ
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